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Yeah when you're in debt the most important thing you should do is cut off your income stream.Goodbye Big 10?
Is that enough?Between 2023 and 2035, Rutgers is projected to make $600 Million Plus in B1G revenues alone. That does not count internally generated revenues from sold out SHIs and RACs during in those years.
Servicing any debt when interest rates are so low is really cheap. It's almost stupid not to invest B1G time right now via debt. AND, there will be be more good debt 😆 when the new Football Facility is built in a few years and when the RAC renovat is on is done as well.
Between 2023 and 2035, Rutgers is projected to make $600 Million Plus in B1G revenues alone. That does not count internally generated revenues from sold out SHIs and RACs during in those years.
Servicing any debt when interest rates are so low is really cheap. It's almost stupid not to invest B1G time right now via debt. AND, there will be be more good debt 😆 when the new Football Facility is built in a few years and when the RAC renovat is on is done as well.
What if you realize this is true and then you add in NIL contracts that makes competing even harder. Your highly compensated coaches know it too. You and your coaches come to the realization it isn’t feasible to continue.Don’t disagree, but one issue is that ongoing investment also continues into perpetuity. In an arms race, there is never an opportunity to be satisfied with what you’ve built. Just guessing, but I think in the rosiest scenario the deficit stops growing and we can match sources and uses using big ten cash flows, but I don’t see an opportunity to meaningfully de-leverage the athletics department.
Doom and GloomWhat if you realize this is true and then you add in NIL contracts that makes competing even harder. Your highly compensated coaches know it too. You and your coaches come to the realization it isn’t feasible to continue.
unfortunately that is my base case how this ultimately goes down. I will enjoy it while it lasts and hope I am wrong.
Was it doom and gloom being a Pirates fan in the 90s watching your OF of Bonilla, Van Slyke and Bonds watching 3 consecutive years you lose 1 to free agency.Doom and Gloom
Look at the bright side, the Mets will be paying Bonilla's contract for the next 14 years until he turns age 72.Was it doom and gloom being a Pirates fan in the 90s watching your OF of Bonilla, Van Slyke and Bonds watching 3 consecutive years you lose 1 to free agency.
it was reality.
If you look at our financial situation PLUS changes in the transfer rules PLUS new NIL world PLUS knowing what we were without Schiano and Pike and conclude that things will be fine you aren’t being realistic.
It doesn’t mean you can’t enjoy the good times now.
I thoight I saw an analysis based on a realistic interest rate it was still advatangeous to the Mets. I could be wrongLook at the bright side, the Mets will be paying Bonilla's contract for the next 14 years until he turns age 72.
BOOOOOOOOO!!!!!!!!!!!!!!The state of New Jersey footed the bill for a Medical School for Seton Hall, a PRIVATE University.
Seton Hall does not have a Medical School. It almost stupidly purchased a Medical School that it could not afford.The state of New Jersey footed the bill for a Medical School for Seton Hall, a PRIVATE University.
If i were a Seton Hall fan I don't think I would be happy to hear the state of NJ (and indirectly me) was footing so much of the athletic department bill.
I am not a SHU fan so I don't care.
Was it doom and gloom being a Pirates fan in the 90s watching your OF of Bonilla, Van Slyke and Bonds watching 3 consecutive years you lose 1 to free agency.
it was reality.
If you look at our financial situation PLUS changes in the transfer rules PLUS new NIL world PLUS knowing what we were without Schiano and Pike and conclude that things will be fine you aren’t being realistic.
It doesn’t mean you can’t enjoy the good times now.
I just used that as a quick example. In the other thread on the free football board. A guy took an in depth look at the debt for facilities and most of it was due by 2048, some by 2035.Is that enough?
Inflation for coaching salaries will have Schiano making 1 billion in 2048.I just used that as a quick example. In the other thread on the free football board. A guy took an in depth look at the debt for facilities and most of it was due by 2048, some by 2035.
So, if you look at B1G money only from 2025 to 2048 using a REALLY REALLY lowball average of $70 million per year for 20 years . You are talking about $1.7 Billion. The real number is OVER $2 Billion. A debt of $250 million looks small compared to $2 Billion Plus.
Again, that money over 20 years does not include internally generated revenues.
Imagine using that argument when talking about money for organizations that aren't against abortions.Any SHU fan (or other state resident) who says "but my taxes" when talking about Rutgers Athletics is completely out of their realm.
Athletics is a minimal amount of the annual Rutgers budget.
Of that budget, a shockingly small amount comes from state appropriations.
The trickle down from "tax money" to "Rutgers Football" is approximately single digit dollars per tax payer.
There is no cooking of the books and if I am due a payment and I receive an advance on what I am due, it is not a loan.
A loan is when you literally don't have the money and you are borrowing from an entity that isn't paying you (the B1G).
I really enjoy these articles because it means you are doing things and are on the map. No one is writing about a bunch of other schools and universities that aren't going to survive this pandemic.
And somehow the article neglected to mention that we are in the middle of a pandemic, with no revenue from attendance, ticket sales etc.....if I showed fans a PSU article on how much lost revenue they have from just 1 season of no football, heads would spin.
The difference between PSU and RU is PSU sells 80K season tickets and has been cashing B1G checks for almost 3 decades. They have tons of revenue and have built everything on their campuses based on football revenue. A number of debt is not an issue if you have a revenue stream to offset it.....it won't be eliminated overnight, but RU will be fine in 10 years. Let's revisit this conversation in 2030..
but that might be on the low end of P-5 HC pay scale. even with a 100,000 seat stadium filled tyo capacity 6 of the 7 home games.Inflation for coaching salaries will have Schiano making 1 billion in 2048.
It’s what we do.but that might be on the low end of P-5 HC pay scale. even with a 100,000 seat stadium filled tyo capacity 6 of the 7 home games.
The two empty deats te game not sold outr will have the anti sports crowd demanding the stadium be torn down and used for a shopping mall
Any time money is an issue, RU fans look for the worst case scenario and not possible ways it will be bettor.
The fact remains that Rutgers hid the real numbers from the public and also hid the fact that Athletic Department is running at a huge annual loss. Someone in the Administration did not want the public to know of the magnitude of the deficit facing its Athletic Department. If Rutgers' AD continuously borrows (or receives advances) from its Big allotment and receives large loans from the University, how is it ever going to break even? Do you think that ticket sales from football and men's basketball is going to erase the current and ever growing 265 million dollar debt in the face of rising costs?
That means OSU would go from making $75 million a year to $50 million per year. So, No. They don't take that deal.What would happen if Netflix wants to get in to live sports? Does a combined equity and debt offering raising $5 billion.
It intends on offering $500,000,000 to 10 schools. Schools have to go independent for football and over a 5 year period have an exclusive right to broadcast all games.
Would schools like Ohio State, Notre Dame, Michigan take that deal?
100,000,000That means OSU would go from making $75 million a year to $50 million per year. So, No. They don't take that deal.
Plus, they lose their academic partnership with AAC/B1G schools.
It happened at Maryland. It wasn't as bad as what appears to be happening at RU tho.It's very disturbing that someone high up in a public university is cooking the books to justify the incurring of huge debts and deficits. Why was this information not made public until now?
Posted this on Football Board. This is an important issue for Rutgers, but not something that contrived.Goodbye Big 10?